Rule 6 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 6 is the share-side counterpart of the unpaid dividend rule. When dividend on shares has stayed unpaid or unclaimed for the period in section 124 of the Act, the shares themselves must be transferred to the IEPF Authority's DEMAT account, after notice to the shareholder, with a statement in Form IEPF-4. This article is as amended up to G.S.R. 733(E) dated 1 October 2025 (Form IEPF-5); the rule text is per the MCA e-book to G.S.R. 552(E) of 9 September 2024. Later amendments should be checked before you rely on it. If shares are involved, see our share transfer service.
The company credits the shares to the DEMAT account of the Authority within thirty days of their becoming due to be transferred, after informing the shareholder three months before the due date and publishing a newspaper notice. It reports the transfer in Form IEPF-4 within thirty days of the corporate action. Shares under a court or Tribunal restraint, or pledged, are not transferred but reported. Voting rights stay frozen until the rightful owner claims the shares.
Rule 6(1): the transfer and the exception
The shares are credited to the DEMAT account of the Authority, opened for the purpose, within thirty days of the shares becoming due to be transferred to the Fund. The Act's seven-year period is in section 124; see our post on sections 124 and 125 of the Companies Act, 2013.
- First proviso. If the beneficial owner has encashed any dividend warrant, or any dividend amount has been credited to the owner's bank account, during the last seven years, the shares need not be transferred, even though some dividend warrants may not have been encashed.
- Transmission. The transfer by a company to the Fund is deemed to be transmission of shares, and the transmission procedure is followed.
- Explanation. All shares in respect of which dividend was transferred to the Fund on or before 7 September 2016 are also transferred to the name of the Fund.
- A transitional proviso for seven-year periods completed between 7 September 2016 and 31 October 2017 has long since run its course.
Rule 6(2). The Board authorises the Company Secretary or any other person to sign the necessary documents.
Rule 6(3): the procedure
| Clause | Step |
|---|---|
| (a) Notice | The company informs the shareholder, at the latest available address, of the transfer three months before the due date, and simultaneously publishes a notice in a leading newspaper in English and a regional language having wide circulation, saying that names and folio numbers or DP ID-Client ID are on its website (the address to be stated) |
| (b) Exceptions | The company does not transfer shares that are subject to a specific order of a Court, Tribunal or statutory authority restraining transfer or payment of dividend, or pledged or hypothecated under the Depositories Act, 1996, or already transferred. It furnishes details of such shares and unpaid dividend to the Authority in Form IEPF-4 within thirty days from the end of the financial year |
| (c) Demat shares | The company informs the depository by corporate action; the depository transfers the shares to the Authority's DEMAT account |
| (d) Physical shares | The Company Secretary or the authorised person applies, for the shareholder, for a new share certificate marked "Issued in lieu of share certificate No ... for the purpose of transfer to IEPF" (particulars in Form SH-1 of the Share Capital and Debentures Rules, 2014); the company then informs the depository by corporate action to convert it into DEMAT form and transfer it to the Authority |
Rule 6(4) to (9): corporate action, statement, votes and benefits
- 6(4). Transfers are made through corporate action, and copies are preserved.
- 6(5). The company sends a statement in Form IEPF-4 to the Authority within thirty days of the corporate action, with details of the transfer, and attaches a copy of the public notice published under 6(3)(a). Form IEPF-4 was substituted in 2024: use the form as currently notified.
- 6(6). Voting rights on shares transferred to the Fund remain frozen until the rightful owner claims them. For the SEBI takeover regulations, 2011, shares transferred to the Authority are not excluded in calculating total voting rights.
- 6(7). The company keeps the IEPF-4 statements and supporting documents for the Authority's inspection.
- 6(8). Benefits such as bonus shares, split, consolidation and fraction shares, except a right issue, are also credited to the same DEMAT account, with an IEPF-4 statement within thirty days of the corporate action.
- 6(9). Shares in that account are not transferred or dealt with except to return them to the claimant or under sub-rules (10), (11) and (11A).
Rule 6(10) to (14): delisting, winding up, section 236, dividends and remittances
- 6(10) and (11). On delisting (under the SEBI delisting regulations, the 2009 regulations being cited as printed) or winding up, the Authority surrenders the shares and credits the proceeds to the Fund in a separate ledger.
- 6(12) and (13). Further dividend on such shares goes to the Fund, and these amounts are remitted online within thirty days of becoming due, with details in Form IEPF-1.
- 6(14). The Authority reports non-compliance by companies to the Central Government.
"Rule 11A" and "Rule 13A"
The consolidated rules also print two separate entries headed "Rule 11A" and "Rule 13A". Both are parts of rule 6, inserted by the Third Amendment Rules of 28 December 2021:
- Sub-rule (11A) of rule 6 deals with an application for purchase of shares under section 236 received through the company. The Authority may receive the amount due to the minority shareholders from the company under section 236(5) and credit it to the Fund, in a separate ledger. Before receiving it, the Authority verifies that the conditions are met and calls the company's report on whether the acquirer has fulfilled section 236 and whether the shares were valued under section 236(2). The company must indemnify the Authority in any dispute; a claimant gets only the amount received, without interest. Our sister article on notice to dissenting shareholders and purchase of minority shareholding covers the section 236 side.
- Sub-rule (13A) deals with remittance of that amount. As it now reads within rule 6, it is remitted online within thirty days from the date it becomes due, with details in Form IEPF-1. The stand-alone entry reproduces the 2021 wording (a specified Punjab National Bank account and Form IEPF-7), which the later substitution replaced; follow the current wording.
A worked example
Saffron Chemicals Limited has a shareholder, Mr. Dev Anand, whose dividends have not been claimed for the full period. Three months before the due date, the company writes to his latest address and publishes the newspaper notice. His shares are in DEMAT form, so the company informs the depository by corporate action, and the shares reach the Authority's DEMAT account within thirty days of the due date. The company sends IEPF-4 with a copy of the public notice within thirty days of the corporate action. A pledged holding is not transferred but is reported in IEPF-4. If Mr. Anand later claims his shares, see rule 7 and Form IEPF-5.
For the dividend side, see rule 5; for section 90(9) shares, see rule 6A.
Need help with share transfers to the IEPF?
The notice, the corporate action and IEPF-4 must all line up within the printed periods. Our share transfer team can prepare the notices, coordinate with the depository and registrar and file the statements. For the claimant's side, see our guide to claiming shares back from the IEPF.
Key takeaways
- Shares go to the Authority's DEMAT account within thirty days of becoming due, after a three-month notice and a newspaper notice.
- An owner who encashed a dividend warrant or received credit to a bank account during the last seven years keeps the shares.
- Court-restrained or pledged shares are not transferred but are reported in IEPF-4 within thirty days from the end of the financial year.
- IEPF-4 follows the corporate action within thirty days, with the public notice attached.
- Voting rights stay frozen; benefits other than a right issue follow the shares.
Read next
- Rule 5: IEPF-1, IEPF-2 and unpaid amounts
- Rule 6A: shares transferred under section 90(9)
- Rule 7: claiming shares and dividend back in IEPF-5
- How to claim shares back from the IEPF in IEPF-5
Disclaimer: Based on the Companies Act, 2013 rules (and the Companies (Auditor's Report) Order, 2020) named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.